Alpaca raises $135M to expand tokenized brokerage

Alpaca announced Thursday that it raised $135 million in a funding round led by Peak XV and secured a debt facility of up to $300 million from Payward, the parent company of Kraken, and BMO to expand its tokenized, agent-first brokerage and API-driven prime brokerage infrastructure.

The company plans to use the capital to accelerate development of services that let broker partners and institutional clients access traditional securities and tokenized assets through application programming interfaces and custody, clearing and brokerage rails.

Yoshi Yokokawa, co-founder and CEO, said demand is growing for regulated infrastructure because tokenization is reshaping market access and artificial intelligence is accelerating new financial applications and market participants.

The debt facility from Payward and BMO can be drawn to support client activity and platform expansion. The equity investment led by Peak XV follows a January funding event in which Alpaca raised $150 million in a round that valued the company at about $1.15 billion. Earlier investors include the venture arm of BNP Paribas.

Alpaca has been providing brokerage, clearing and custody infrastructure to trading platforms. Last month the firm disclosed a revenue-sharing arrangement with Binance to provide backend services for the exchange’s stock trading product.

Data aggregator Token Terminal reported that the global market capitalization of tokenized stocks reached a record $2.3 billion. Several crypto and fintech firms are working to bring traditional investment products onto blockchain rails, often aiming to reach investors outside the United States.

Alpaca positions itself as an API-first provider for software developers and broker partners, offering tools to build trading and investment products without building brokerage infrastructure from scratch. The company expects the new financing will support expansion of its prime brokerage offerings, increase capacity for custody and clearing operations, and speed product development for tokenized and traditional assets.

Financial terms beyond the headline amounts were not disclosed, and the company did not provide a timetable for product launches tied to the new funding.